The suspension of oil supply in Libya continues, with partial resumptions.
![The suspension of oil supply in Libya continues, with partial resumptions.](https://sgsnsimg.moomoo.com/sns_client_feed/181383973/20240903/30fe9635c5df653e497414f2357c3d72.jpg/big?area=105&is_public=true)
In order to gain an advantage in the dispute over control of the central bank, the Haftar family in Libya...It has been a week since oil production was disrupted.However, it is still ongoing.The petroleum exports have not been resumed.According to six engineers interviewed by the Pan-Arab newspaper Asharq-Al-Awsat, the exports from the ports of Es Sidra, Ras Lanouf, Hariga, Zueitina, Brega, and Sirte remain suspended.
According to S&P Global, crude oil production in the three eastern oil fields, which are under the control of the militia leader Khalifa Haftar, has recovered to a maximum of 0.23 million barrels per day, but it is still far from the July production of 1.15 million barrels per day in Libya. Libya's crude oil exports reached a multi-year high in April, and refineries in northwest Europe and the Mediterranean have valued Libya's light oil.
UBS analyst Giovanni Staunovo told Bloomberg that the situation in Libya is very important for the oil market, as it represents "barrels actually lost", and as long as the Libyan crisis continues, it will effectively tighten the physical market.
The periodic instability of Libya's crude oil production has occurred repeatedly since the first Libyan civil war in 2011. Standard Chartered commodity analyst estimated that over 4 billion barrels of production were lost, resulting in losses of 320 billion dollars to the countries in North Africa. However, the suspension of Libya's crude oil production did not push up oil prices, thanks to concerns about a hard landing for the US economy and a bearish outlook for 2025. Brent crude (October contract) plummeted from $81.25 per barrel a week ago to $76.89 per barrel in Monday's daytime trading, while WTI fell from $77.17 per barrel to $73.60 per barrel.
According to StanChart, it is difficult to justify the bearishness in the crude oil market when considering sound fundamentals.For example, crude oil inventories in the United States have decreased significantly, with a cumulative decrease of 34.7 million barrels in the past eight weeks, reaching an average of 0.62 million barrels per day (mb/d).
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